Construction Business Debt Relief
Answer-first: Construction businesses face project-based cash flow, big revenue at milestones, long dry spells between, that doesn't match the daily ACH schedule of MCA debt. BDA helps contractors, GCs, subs, and specialty trades settle MCA debt while preserving equipment, bonds, and subcontractor relationships.
Why do MCAs hit construction businesses harder?
Construction revenue arrives in lumps. A $300,000 contract pays on milestones, maybe 30% at start, 30% at phase, 40% at completion. Between milestones, there's often no revenue for weeks. MCA daily withdrawals don't pause for project schedules.
Retention holdbacks make it worse. Many contracts withhold 5-10% until final punch-list. That's money you've earned but can't access, while daily MCA withdrawals continue.
Equipment financing adds a layer. Contractors often have UCC-1 liens from equipment finance companies that overlap with any MCA UCC-1, creating priority disputes that complicate settlement.
What do construction owners typically come to us with?
- GCs with $75,000-$300,000 in MCAs, often taken to bridge project delays
- Subs and specialty trades (electrical, plumbing, HVAC, roofing, flooring) with $40,000-$150,000 stacked across multiple advances
- Excavation / grading / site work contractors with seasonal variance similar to agriculture
- Contractors with bonded projects who can't risk judgments that would affect bonding capacity
How does BDA's settlement process fit construction businesses?
We coordinate with bonding requirements. Surety bonds require clean financial records, judgments or public liens can affect bondability. That's why pre-default settlement matters for bonded contractors. Once a judgment is public, bonding capacity often drops.
For unbonded residential and small commercial contractors, the flexibility is greater. Settlement often proceeds faster because there's less collateral entanglement.
What a real BDA call sounds like for construction
A typical first call from a construction owner: a project paid 60 days late, payroll due weekly, two or three MCAs taken to bridge cash flow that never bridged anything. The owner has personal guarantees on each advance, a UCC filing on the business, and just had a bond renewal denied. Subs are pressing for payment. The next progress draw is still three weeks out.
What BDA actually does on the call
BDA's senior consultant reviews the contracts including COJ exposure and any cross-collateralization clauses. Construction settlements often need careful attention to bonding company relationships and AR pledges. We restructure to a sustainable monthly payment so the business can survive long progress-draw cycles without the daily ACH draining every receivable.
“I took on three MCAs to make payroll while waiting on a progress draw. By the time the draw came in, the daily ACH had eaten it before I could spend it. BDA stopped the bleed and got my bonding eligibility back on track.”
, Verified Trustpilot review, general contractor
FAQ
Will settlement affect my bondability? Settlement itself is confidential between BDA and lenders, but if a judgment has already been filed, that's public record and may affect bonding. Acting pre-default preserves bonding capacity.
What about equipment UCCs from my finance company? Overlapping UCC-1 liens require priority coordination during settlement. We've handled hundreds of these situations. It's complex but workable.
Can I continue to take new projects during settlement? Yes. Settlement is specifically designed to keep the business operating. New projects continue normally.
What if my MCA lender has filed a lien on my accounts receivable? Common. Part of what we handle during settlement, receivables liens are typically released as part of the settled agreement.
Do you work with specialty trades or only GCs? Both. The process is fundamentally similar, differences are in project size patterns and collateral specifics.
What about subs who owe me money? AR collection is separate from your MCA settlement. Your AR remains yours, settlement doesn't affect your right to collect from clients.
Preserve your bondability and your business
Schedule a Free Consultation →Trade-specific MCA settlement playbooks
Specific guidance for your trade, including the cash flow patterns, lender mix, and lawsuit exposure that apply to your business specifically:
